SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                           FORM 10-K

[X]  Annual Report Pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934
     For the fiscal year ended December 31, 2000

[ ]  Transition Report Pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934

                Commission File Number 1-3423-01

                     ENRON CAPITAL TRUST II
     (Exact name of registrant as specified in its charter)

           Delaware                      76-6122939
 (State or other jurisdiction           (IRS Employer
of incorporation or organization)     Identification No.)


         1400 Smith Street, Houston Texas          77002
     (Address of principal executive offices)    (Zip Code)

                         (713) 853-6161
     (Registrant's telephone number, including area code)

Securities registered pursuant          Name of Exchange on which registered:
to Section 12(b) of the Act:

8 1/8% Trust Preferred Securities           New York Stock Exchange
      (Title of Class)

  Securities registered pursuant to Section 12(g) of the Act:

                              None

   Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                   [X] Yes             [  ] No

   Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this
Form 10-K.   [X]

   As of March 26, 2001, the registrant had an aggregate of
6,000,000 8 1/8% Trust Preferred Securities and 186,000 8 1/8%
Trust Common Securities outstanding.

              DOCUMENTS INCORPORATED BY REFERENCE

None.

<PAGE>
                             PART I

ITEM 1.  BUSINESS.

   Enron Capital Trust II (the "Trust") is a statutory business
trust created under the Delaware Business Trust Act, as amended
(the "Trust Act"), pursuant to an amended and restated
declaration of trust (the "Declaration") and the filing of a
certificate of trust with the Secretary of State of the State of
Delaware.  On January 16, 1997, the Trust completed its initial
public offering of the Trust Preferred Securities described
below, as a result of which the Trust's sole assets are 6,186,000
8 1/8% Partnership Preferred Securities ($25 liquidation amount
per security) representing an 85% limited partnership interest in
Enron Preferred Funding II, L.P., a Delaware limited partnership
(the "Partnership").  Ownership of the assets of the Trust is
evidenced by an aggregate of 6,000,000 8 1/8% Trust Preferred
Securities (the "Trust Preferred Securities"), which are listed
and traded on the New York Stock Exchange under the symbol "ENE
PrR", and 186,000 Trust Common Securities (the "Trust Common
Securities," and, together with the Trust Preferred Securities,
the "Trust Securities"), all of which are owned by Enron Corp.,
an Oregon corporation ("Enron").  The Trust makes distributions
on the Trust Securities to the extent it receives distributions
from the Partnership on the Partnership Preferred Securities.
Payments on the Partnership Preferred Securities represent the
sole source of cash for the Trust.  Distributions on the Trust
Securities are guaranteed by Enron, but only to the extent that
the Trust has available funds to pay such distributions.  The
Trust was created for the sole purpose of issuing the Trust
Securities, investing the proceeds of such issuance in the
Partnership Preferred Securities and engaging in only those other
activities necessary or incidental thereto.  The Trust Securities
are subject to redemption at any time on or after March 31, 2002
or earlier in the event of certain tax law changes or other
events.

   The general partner of the Partnership is Enron, which owns a
15% general partnership interest in the Partnership.  Since
completion of the offering of the Trust Preferred Securities on
January 16, 1997, the assets of the Partnership have been
invested primarily in a $136,450,000 principal amount 7.75%
Subordinated Debenture due 2016, Series II of Enron (the "Enron
Debenture") and $21,836,000 principal amount 7.75% Debentures due
2016, Series II, of each of Enron North America Corp. and Enron
Transportation Services Company (the "Subsidiary Debentures" and,
together with the Enron Debenture, the "Debentures"), each of
which is a wholly owned subsidiary of Enron. The obligations
under the Subsidiary Debentures are guaranteed by Enron.  The
respective issuers of the Debentures have certain rights to elect
to defer any payments of principal and interest on the Debentures
for up to five years at a time. In addition to the Debentures,
the Partnership owns an aggregate of approximately $1,900,000 in
short-term, investment grade debt securities (the "Eligible Debt
Securities").  Under certain circumstances, upon repayment of one
or more of the Debentures, the assets of the Partnership may be
reinvested in one or more debt securities of Enron or its
subsidiaries.  Payments of interest and principal on the Enron
Debenture and the Subsidiary Debentures (or the guarantees
thereof) and the Eligible Debt Securities are the sole source of
revenue for the Partnership.  The Partnership pays distributions
to the Trust as holder of the Partnership Preferred Securities
when and if Enron, as the general partner, determines to do so,
although Enron has no obligation to do so.

   For more information concerning the Trust, the Partnership and
the rights of the holders of the Trust Securities, see the
Amended and Restated Declaration of Trust relating to the Trust,
the Amended and Restated Agreement of Limited Partnership
relating to the Partnership, the Indentures relating to each of
the Debentures and the Guarantee Agreements of Enron with respect
to the Trust Preferred Securities, the Partnership Preferred
Securities and the Subsidiary Debentures, each of which is
included as an exhibit to this Form 10-K.

   Enron Corp., an Oregon corporation, is an energy and
communications company with headquarters in Houston, Texas.  The
common stock of Enron is traded on the New York Stock Exchange
under the symbol "ENE."  Enron's operations are conducted through
its subsidiaries and affiliates which are principally engaged in
the transportation of natural gas through pipelines to markets
throughout the United States; the generation, transmission and
distribution of electricity to markets in the northwestern United
States; the marketing of natural gas, electricity and other
commodities and related risk management and finance services
worldwide; the development, construction and operation of power
plants, pipelines and other energy related assets worldwide; and
the development of an intelligent network platform to provide
bandwidth management services and deliver high bandwidth
applications.

   The location of the principal executive offices of the Trust
and the Partnership is c/o Enron Corp., 1400 Smith Street,
Houston, Texas 77002, and its phone number at such address is
(713) 853-6161.


ITEM 2.  PROPERTIES.

   Not applicable.

ITEM 3.  LEGAL PROCEEDINGS.

   None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

   Not applicable.

<PAGE>
                             PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS.

   The Trust Preferred Securities are listed on the New York
Stock Exchange ("NYSE") under the symbol "ENE PrR."  From January
16, 1997 through December 31, 2000, the high and low prices of
the Trust Preferred Securities on the NYSE were $26.75 and
$20.50, respectively.  As of February 2, 2001, the approximate
number of holders of record of the Trust Preferred Securities was
70.  All of the Trust Common Securities are held by Enron.

   During 2000 and 1999, the Trust paid quarterly distributions
on the Trust Preferred Securities of $0.5078 per quarter, and the
Trust expects to continue to pay distributions on the Trust
Preferred Securities of $0.5078 per quarter to the extent the
Trust has funds available for the payment of such distributions.

   The Trust issued an aggregate of 186,000 Trust Common
Securities to Enron on January 16, 1997 in a transaction exempt
from the Securities Act of 1933 pursuant to Section 4(2) thereof.

ITEM 6.  SELECTED FINANCIAL DATA (UNAUDITED).

<TABLE>
<CAPTION>
                                                       Period from Inception
                           Year Ended December 31,       (January 13, 1997)
                           2000      1999      1998    to December 31, 1997
                               (In Thousands)              (In Thousands)

<S>                      <C>       <C>       <C>             <C>
Revenues                 $12,565   $12,565   $12,565         $12,042
Income from Continuing
 Operations               12,565    12,565    12,565          12,042
Distributions             12,565    12,565    12,565          12,042
</TABLE>

<TABLE>
<CAPTION>
                                   As of December 31,
                         2000       1999       1998       1997
                                    (In Thousands)

<S>                    <C>        <C>        <C>        <C>
Total Assets           $154,650   $154,650   $154,650   $154,650
Shareowners' Equity     154,650    154,650    154,650    154,650
</TABLE>

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.

   On January 16, 1997, the Trust issued $150 million of Trust
Preferred Securities to the public.  The Trust used the proceeds
from the offering combined with $4.7 million of proceeds from the
issuance of Trust Common Securities to Enron to acquire
Partnership Preferred Securities of the Partnership.  The
proceeds received by the Partnership were invested primarily in
20-year debentures of Enron and two wholly-owned subsidiaries of
Enron.

   During 2000, 1999 and 1998, holders of the 6,000,000 Trust
Preferred Securities were paid quarterly cash distributions
totaling $12.2 million per year.  During 2000, 1999 and 1998,
holders of the 186,000 Trust Common Securities were paid
quarterly cash distributions totaling $0.4 million per year.  On
those same quarterly distribution dates, the Trust received
quarterly distributions from the Partnership totaling $12.6
million per year for 2000, 1999 and 1998.


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

   The information required hereunder is included in this report
as set forth in the "Index to Financial Statements" on page F-1.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.

   Not Applicable.

<PAGE>
                            PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

   The Trust is administered by three trustees.  The first
Trustee, Ben Glisan, Jr. (the "Regular Trustee"), is an employee
of Enron or its subsidiaries.  The second trustee is The Chase
Manhattan Bank, which is unaffiliated with Enron and acts as
indenture trustee for purposes of compliance with the provisions
of the Trust Indenture Act (the "Property Trustee").  The third
trustee, Chase Manhattan Bank Delaware, is also unaffiliated with
Enron and serves as Delaware Trustee to fulfill a requirement of
the Trust Act.

ITEM 11.  EXECUTIVE COMPENSATION.

   The Regular Trustee is not compensated by the Trust or Enron
for his services as trustee.  The Property Trustee and Delaware
Trustee are not compensated by the Trust but are paid customary
compensation for their services by Enron.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT.

   Not applicable.


ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

   Except as described above under Item 1, the Trust is not party
to any transactions with affiliates.

<PAGE>
                             PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
FORM 8-K.

   (a)(1) and (2) Financial Statements and Financial Statement
Schedules

   See "Index to Financial Statements" set forth on page F-1.


     (a)(3) List of Exhibits

     4.1  Certificate of Trust (incorporated by reference to
          Exhibit 4(a) of the Registration Statement on Form S-1
          of the Trust (No. 333-18669)).
     4.2  Amended and Restated Declaration of Trust dated as of
          January 13, 1997 (incorporated by reference to Exhibit
          4.2 to Enron Capital Trust II Form 10-K for the year
          ended 1996).
     4.3  Amended and Restated Agreement of Limited Partnership
          of the Enron Preferred Funding II, L.P. dated as of
          January 16, 1997 (incorporated by reference to Exhibit
          4.3 to Enron Capital Trust II Form 10-K for the year
          ended 1996).
     4.4  Trust Preferred Guarantee Agreement dated as of January
          16, 1997 (incorporated by reference to Exhibit 4.4 to
          Enron Capital Trust II Form 10-K for the year ended
          1996).
     4.5  Partnership Preferred Guarantee Agreement dated as of
          January 16, 1997 (incorporated by reference to Exhibit
          4.5 to Enron Capital Trust II Form 10-K for the year
          ended 1996).
     4.6  Indenture dated as of January 16, 1997 relating to the
          Enron's 7.75% Subordinated Debentures due 2016, Series
          II (incorporated by reference to Exhibit 4.6 to Enron
          Capital Trust II Form 10-K for the year ended 1996).
     4.7  Indenture dated as of January 16, 1997 relating to
          Enron Transportation Services Company's 7.75%
          Debentures due 2016, Series II (incorporated by
          reference to Exhibit 4.7 to Enron Capital Trust II Form
          10-K for the year ended 1996).
     4.8  Indenture dated as of January 16, 1997 relating to the
          Enron Capital & Trade Resources Corp. 7.75% Debentures
          due 2016, Series II (incorporated by reference to
          Exhibit 4.8 to Enron Capital Trust II Form 10-K for the
          year ended 1996).
     4.9  Guarantee Agreement of Enron dated as of January 16,
          1997 relating to Enron Transportation Services
          Company's 7.75% Debentures due 2016, Series II
          (incorporated by reference to Exhibit 4.9 to Enron
          Capital Trust II Form 10-K for the year ended 1996).
     4.10 Guarantee Agreement of Enron dated as of January
          16, 1997 relating to Enron Capital & Trade Resources
          Corp. 7.75% Debentures due 2016, Series II
          (incorporated by reference to Exhibit 4.10 to Enron
          Capital Trust II Form 10-K for the year ended 1996).
     4.11 Form of certificate representing Trust Preferred
          Securities (included in Exhibit 4.2)

     (b)  Reports on Form 8-K.

     No reports on Form 8-K have been filed during the last
     quarter of the period covered by this report.

<PAGE>
                  INDEX TO FINANCIAL STATEMENTS

                     ENRON CAPITAL TRUST II


Financial Statements of Enron Capital Trust II

   Report of Independent Public Accountants                 F-2

   Income Statement for the years ended December 31, 2000,
    1999 and 1998                                           F-3

   Balance Sheet as of December 31, 2000 and 1999           F-4

   Statement of Cash Flows for the years ended
    December 31, 2000, 1999 and 1998                        F-5

   Statement of Changes in Shareowners' Equity for the
    years ended December 31, 2000, 1999 and 1998            F-6

   Notes to the Financial Statements                        F-7

   Exhibit 99 - Financial Statements of Enron Preferred
    Funding II, L.P.                                        F-10

Financial Statement Schedules

   Financial statement schedules have been omitted because they
are inapplicable as the information required therein is included
elsewhere in the financial statements or notes thereto.


          REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



To the Shareowners of Enron Capital Trust II:

We have audited the accompanying balance sheet of Enron
Capital Trust II (a Delaware statutory business trust) as of
December 31, 2000 and 1999, and the related statements of
income, cash flows and changes in shareowners' equity for
the years ended December 31, 2000, 1999 and 1998.  These
financial statements are the responsibility of Enron
Capital Trust II's management. Our responsibility is to
express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with auditing
standards generally accepted in the United States.  Those
standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We
believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial
position of Enron Capital Trust II as of December 31, 2000
and 1999, and the results of its operations and its cash
flows for the years ended December 31, 2000, 1999 and 1998,
in conformity with accounting principles generally accepted
in the United States.


                              Arthur Andersen LLP


Houston, Texas
March 26, 2001

<PAGE>
ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

<TABLE>
                      Enron Capital Trust II
                         Income Statement
                          (In Thousands)

<CAPTION>
                              Year Ended December 31,
                              2000      1999      1998

<S>                         <C>       <C>       <C>
Revenues from Partnership
 Preferred Securities       $12,565   $12,565   $12,565

Net Income                  $12,565   $12,565   $12,565

<FN>
The accompanying notes are an integral part of these financial
statements.
</TABLE>

<PAGE>
<TABLE>
                      Enron Capital Trust II
                           Balance Sheet
                          (In Thousands)

<CAPTION>
                                             As of December 31,
                                               2000      1999
ASSETS

<S>                                          <C>        <C>
Investment in Limited Partnership Interest   $154,650   $154,650

Total Assets                                 $154,650   $154,650


SHAREOWNERS' EQUITY

Shareowners' Equity
  Trust Preferred Securities -
   authorized, issued and outstanding
   6,000,000 securities, $25 liquidation
   value                                     $150,000   $150,000
  Trust Common Securities -
   authorized, issued and outstanding
   186,000 securities, $25 liquidation
   value                                        4,650      4,650

Total Shareowners' Equity                    $154,650   $154,650

<FN>
The accompanying notes are an integral part of these financial
statements.
</TABLE>

<PAGE>
<TABLE>
                      Enron Capital Trust II
                      Statement of Cash Flows
                          (In Thousands)

<CAPTION>
                                             Year Ended December 31,
                                            2000       1999      1998

<S>                                      <C>        <C>        <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Reconciliation of Net Income to Net
 Cash Provided by Operating Activities
  Net Income                             $ 12,565   $ 12,565   $ 12,565

Net Cash Provided by Operating
 Activities                                12,565     12,565     12,565

CASH FLOW FROM INVESTING ACTIVITIES:
Net Cash Used in Investing Activities           -          -          -

CASH FLOW FROM FINANCING ACTIVITIES:
Dividends Paid                            (12,565)   (12,565)   (12,565)

Net Cash Provided by (Used in)
 Financing Activities                     (12,565)   (12,565)   (12,565)

Increase (Decrease) in Cash and
 Cash Equivalents                               -          -          -

Cash and Cash Equivalents,
 Beginning of Year                              -          -          -

Cash and Cash Equivalents,
 End of Year                             $      -   $      -   $      -

<FN>
The accompanying notes are an integral part of these financial
statements.
</TABLE>

<PAGE>
<TABLE>
                      Enron Capital Trust II
            Statement of Changes in Shareowners' Equity
                          (In Thousands)

<CAPTION>
                                    Year Ended December 31,
                                   2000       1999       1998

<S>                              <C>        <C>        <C>
Trust Preferred Securities
  Balance, Beginning of Year     $150,000   $150,000   $150,000
  Balance, End of Year            150,000    150,000    150,000

Trust Common Securities
  Balance, Beginning of Year        4,650      4,650      4,650
  Balance, End of Year              4,650      4,650      4,650

Retained Earnings
  Balance, Beginning of Year            -          -          -
  Net Income                       12,565     12,565     12,565
  Dividends:
     Trust Preferred Securities   (12,187)   (12,187)   (12,187)
     Trust Common Securities         (378)      (378)      (378)
  Balance, End of Year           $      -   $      -   $      -

<FN>
The accompanying notes are an integral part of these financial
statements.
</TABLE>

<PAGE>
NOTES TO FINANCIAL STATEMENTS

1. DESCRIPTION OF THE TRUST

   Enron Capital Trust II (the "Trust") is a statutory
business trust created under the Delaware Business Trust
Act.  Ownership of the assets of the Trust is evidenced by
an aggregate of 6,000,000 8.125% Trust Preferred Securities
(the "Trust Preferred Securities"), which are listed and
traded on the New York Stock Exchange under the symbol "ENE
PrR", and 186,000 Trust Common Securities (the "Trust Common
Securities" and, together with the Trust Preferred
Securities, the "Trust Securities"), all of which are owned
by Enron Corp. ("Enron").  The Trust's sole assets are
6,186,000 8.125% Partnership Preferred Securities ($25
liquidation amount per security) representing an 85% limited
partnership interest in Enron Preferred Funding II, L.P.
(the "Partnership").  The Trust and the Partnership are
consolidated subsidiaries of Enron for financial accounting
purposes.  The Trust makes distributions on the Trust
Securities to the extent it receives distributions from the
Partnership on the Partnership Preferred Securities, which
represents the sole source of cash for the Trust. Enron is
obligated to pay all fees and expenses of the Trust and the
Partnership.

   The Trust was created for the sole purpose of issuing the
Trust Securities, investing the proceeds of such issuance in
the Partnership Preferred Securities and engaging in only
those other activities necessary or incidental thereto.

   Of the three trustees for the Trust, one is an employee
or officer of Enron or its affiliates ("the Regular
Trustee"), one is a financial institution that acts as
indenture trustee for purposes of compliance with the Trust
provisions and one is an entity that maintains its principal
place of business in Delaware for the purposes of compliance
with the Business Trust Act.  The Regular Trustee is
authorized and directed to conduct the affairs of and to
operate the Trust.  Enron, at its discretion as holder of
the Trust Common Securities, may appoint, remove or replace
the trustees.

   In the event of liquidation of the Trust, holders are
entitled to receive $25 per Trust Preferred Security plus
any accrued and unpaid distributions (together the "Trust
Liquidation Distribution"), unless Partnership Preferred
Securities are distributed to such holders.  If the Trust
has insufficient assets to pay the Trust Liquidation
Distribution in full, then the holders of the Trust
Preferred Securities will receive distributions on a pro
rata basis.  The holders of the Trust Common Securities are
entitled to receive distributions on liquidation pro rata
with the holders of the Trust Preferred Securities, except
that under certain events of default the holders of the
Trust Preferred Securities will have preference over the
holders of the Trust Common Securities with respect to
payments upon liquidation of the Trust.

2. DESCRIPTION OF THE PARTNERSHIP

   The general partner of the Partnership is Enron, which
owns a 15% general partnership interest in the Partnership.
Since completion of the offering of the Trust Preferred
Securities on January 16, 1997, the assets of the
Partnership have been invested primarily in a $136,450,000
principal amount 7.75% Subordinated Debenture, Series II,
due 2016 of Enron (the "Enron Debenture") and $21,836,000
principal amount 7.75% Debentures, Series II, due 2016 (the
"Subsidiary Debentures" and, together with the Enron
Debenture, the "Debentures"), of each of Enron North America
Corp. and Enron Transportation Services Company, each of
which is a wholly-owned subsidiary of Enron.  The
obligations under the Subsidiary Debentures are guaranteed
by Enron.  The respective issuers of the Debentures have
certain rights to elect to defer any payments of principal
and interest on the Debentures for up to five years at a
time. In addition to the Debentures, the Partnership owns an
aggregate of approximately $1,900,000 in short-term,
investment grade debt securities (the "Eligible Debt
Securities") as of December 31, 2000 and 1999.  Under
certain circumstances, upon repayment of one or more of the
Debentures, the assets of the Partnership may be reinvested
in one or more debt securities of Enron or its subsidiaries.
Payments of interest on the Debentures (or the guarantees
thereof) and the Eligible Debt Securities are the sole
source of revenue for the Partnership.  The Partnership pays
distributions to the Trust as holder of the Partnership
Preferred Securities when and if Enron, as the general
partner, determines to do so, although Enron has no
obligation to do so.  In the event Enron determines not to
make a distribution, the shareholders must be notified.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   Principles of Consolidation.  The Trust, as the limited
partner of the Partnership, accounts for its investment in
the Partnership under the equity method.

   Use of Estimates.  The preparation of financial
statements in conformity with generally accepted accounting
principles requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities
at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting
period.  Actual results could differ from those estimates.

4. INCOME TAXES

   The Trust is classified for U.S. federal income tax
purposes as a grantor trust.  For U.S. federal income tax
purposes, the Trust is a non-taxable entity and each holder
of Trust Preferred Securities and Trust Common Securities is
considered the owner of an individual interest in the
Partnership Preferred Securities held by the Trust, and each
holder is required to include in its gross income its
distributive share of income attributable to the
Partnership, which generally is equal to such holder's
allocable share of amounts accrued on the Partnership
Preferred Securities.  Accordingly, no recognition has been
given to income taxes in the accompanying financial
statements.

5. DISTRIBUTIONS

   Holders of the Trust Securities are entitled to receive
quarterly cash distributions at an annual rate of 8.125%.
Distributions on the Trust Preferred Securities are
guaranteed by Enron, but only to the extent that the Trust
has available funds to pay such distributions.  Any
distributions not paid on the scheduled payment date will
accumulate and compound quarterly at a rate per annum equal
to 8.125%.

   Neither the Trust Preferred Securities nor the
Partnership Preferred Securities have any scheduled maturity
but are subject to redemption at any time, upon not less
than 30 nor more than 60 days notice, on or after March 31,
2002 or earlier in the event of certain tax law changes or
other events.

6. SUMMARIZED FINANCIAL INFORMATION OF THE PARTNERSHIP

   Summarized financial information for the Partnership,
accounted for by the equity method, is as follows (in
thousands):

<TABLE>
<CAPTION>
                               December 31,
Balance Sheet                 2000      1999

<S>                        <C>        <C>
Current Assets             $  1,850   $  1,852
Noncurrent Assets           180,122    180,122
Shareowners' Capital        181,972    181,974
</TABLE>

<TABLE>
<CAPTION>
                    Year Ended December 31,
Income Statement    2000      1999      1998

<S>               <C>       <C>       <C>
Revenues          $14,073   $14,051   $14,062
Net Income         14,073    14,051    14,062
</TABLE>

<PAGE>
Exhibit 99 - FINANCIAL STATEMENTS OF ENRON PREFERRED FUNDING
II, L.P.


          REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



To the Partners of Enron Preferred Funding II, L.P.:

We have audited the accompanying balance sheet of Enron
Preferred Funding II, L.P. (a Delaware limited partnership)
as of December 31, 2000 and 1999, and the related statements
of income, cash flows and changes in shareowners' equity for
the years ended December 31, 2000, 1999 and 1998.  These
financial statements are the responsibility of the Enron
Preferred Funding II, L.P.'s management.  Our responsibility
is to express an opinion on these financial statements based
on our audits.

We conducted our audits in accordance with auditing
standards generally accepted in the United States.  Those
standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We
believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial
position of Enron Preferred Funding II, L.P. as of December
31, 2000 and 1999, and the results of its operations and its
cash flows for the years ended December 31, 2000, 1999 and
1998, in conformity with accounting principles generally
accepted in the United States.


                              Arthur Andersen LLP


Houston, Texas
March 26, 2001

<PAGE>
<TABLE>
                 Enron Preferred Funding II, L.P.
                         Income Statement
                          (In Thousands)

<CAPTION>\
                    Year Ended December 31,
                    2000      1999      1998
<S>               <C>       <C>       <C>
Interest Income   $14,073   $14,051   $14,062

Net Income        $14,073   $14,051   $14,062

<FN>
The accompanying notes are an integral part of these financial
statements.
</TABLE>

<PAGE>
<TABLE>
                 Enron Preferred Funding II, L.P.
                           Balance Sheet
                          (In Thousands)

<CAPTION>
                                             As of December 31,
                                               2000       1999
ASSETS

<S>                                          <C>        <C>
Cash and Cash Equivalents                    $  1,850   $  1,852
Long-Term Notes Receivable from Affiliates    180,122    180,122

Total Assets                                 $181,972   $181,974


LIABILITIES AND SHAREOWNERS' EQUITY

Shareowners' Equity
  Partnership Preferred Securities -
   authorized, issued and outstanding
   6,186,000 securities, $25 liquidation
   value                                     $154,650   $154,650
  General Partner Contribution                 27,292     27,292
  Retained Earnings                                30         32

Total Liabilities and Shareowners' Equity    $181,972   $181,974

<FN>
The accompanying notes are an integral part of these financial
statements.
</TABLE>

<PAGE>
<TABLE>
                 Enron Preferred Funding II, L.P.
                      Statement of Cash Flows
                          (In Thousands)

<CAPTION>
                                             Year Ended December 31,
                                           2000       1999       1998

<S>                                      <C>        <C>        <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Reconciliation of Net Income to Net
 Cash Provided by Operating Activities
  Net Income                             $ 14,073   $ 14,051   $ 14,062

Net Cash Provided by Operating
 Activities                                14,073     14,051     14,062

CASH FLOW FROM INVESTING ACTIVITIES:
Net Cash Used in Investing Activities           -          -          -

CASH FLOW FROM FINANCING ACTIVITIES:
Dividends Paid                            (14,075)   (14,075)   (14,006)

Net Cash Provided by (Used in)
 Financing Activities                     (14,075)   (14,075)   (14,006)

Increase (Decrease) in Cash and
 Cash Equivalents                              (2)       (24)        56

Cash and Cash Equivalents,
 Beginning of Year                          1,852      1,876      1,820

Cash and Cash Equivalents,
 End of Year                             $  1,850   $  1,852   $  1,876

<FN>
The accompanying notes are an integral part of these financial
statements.
</TABLE>

<PAGE>
<TABLE>
                 Enron Preferred Funding II, L.P.
            Statement of Changes in Shareowners' Equity
                          (In Thousands)

<CAPTION>
                                           Year Ended December 31,
                                          2000       1999       1998

<S>                                     <C>        <C>        <C>
Partnership Preferred Securities
  Balance, Beginning of Year            $154,650   $154,650   $154,650
  Balance, End of Year                   154,650    154,650    154,650

General Partner Contribution
  Balance, Beginning of Year              27,292     27,292     27,292
  Balance, End of Year                    27,292     27,292     27,292

Retained Earnings
  Balance, Beginning of Year                  32         56          -
  Net Income                              14,073     14,051     14,062
  Dividends:
     Partnership Preferred Securities    (12,565)   (12,565)   (12,565)
     General Partner                      (1,510)    (1,510)    (1,441)
  Balance, End of Year                  $     30   $     32   $     56

<FN>
The accompanying notes are an integral part of these financial
statements.
</TABLE>

<PAGE>
NOTES TO FINANCIAL STATEMENTS

1.   DESCRIPTION OF THE PARTNERSHIP

   Enron Preferred Funding II, L.P. (the "Partnership") is a
limited partnership that was formed on January 16, 1997 in
connection with the creation of Enron Capital Trust II (the
"Trust").  Pursuant to the certificate of limited partnership, as
amended, and the Limited Partnership Agreement, Enron Corp.
("Enron") is the sole general partner of the Partnership.

   On January 16, 1997 the Partnership issued $154,650,000 of
Partnership Preferred Securities to the Trust.  The Trust is the
sole limited partner of the Partnership.  The Trust and the
Partnership are consolidated subsidiaries of Enron for financial
accounting purposes.  The Partnership, in turn, used proceeds
from the issuance of the Partnership Preferred Securities and
general partner contributions of $27,292,000 to invest primarily
in 20-year debentures of Enron and two wholly-owned subsidiaries
of Enron (the "Debentures"). In addition to the Debentures, the
Partnership owns an aggregate of approximately $1,900,000 in
short-term, investment grade debt securities as of December 31,
2000 and 1999. Interest and principal payments related to the
Debentures issued by Enron's subsidiaries have been guaranteed,
on a subordinated basis, by Enron.

   The Partnership Preferred Securities, which have no scheduled
maturity date, are redeemable at the option of Enron, upon notice
and in whole or in part, on or after March 31, 2002 or ealier in
the event of certain tax law changes or other events, at $25 per
Partnership Preferred Security plus any accrued unpaid
distributions.

   In the event of liquidation of the Partnership, holders of the
Partnership Preferred Securities are entitled to receive $25 per
Partnership Preferred Security plus any accrued and unpaid
distributions, before any distribution is made to Enron as
general partner.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   Revenue Recognition.  Interest income on the Debentures is
recorded on the accompanying Income Statement when due from Enron
and its wholly-owned subsidiaries.

   Cash and Cash Equivalents.  The Partnership considers all
highly liquid investments with an original maturity of three
months or less to be cash equivalents.

   Use of Estimates.  The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from
those estimates.

3.   ADMINISTRATION OF THE PARTNERSHIP

   The Partnership is managed by Enron and exists for the sole
purpose of (i) issuing its partnership interests, (ii) investing
the proceeds thereof in Debentures and to a lesser extent,
certain short-term investments and (iii) engaging in only those
other activities necessary or incidental thereto.  To the extent
that aggregate payments to the Partnership on the Debentures and
investments exceed distributions payable with respect to the
Partnership Preferred Securities, the Partnership may at times
have excess funds which shall be allocated to and may, in Enron's
sole discretion, be distributed to Enron. Enron is obligated to
pay all fees and expenses of the Trust and the Partnership.

4.   INCOME TAXES

   The Partnership is classified for U.S. federal income tax
purposes as a limited partnership. The profit or loss of the
Partnership for federal income tax purposes is included in the
income tax returns of the partners.  Accordingly, no recognition
has been given to income taxes in the accompanying financial
statements.

5.   DISTRIBUTIONS

   Holders of Partnership Preferred Securities are entitled to
receive cumulative cash distributions, if, as and when declared
by Enron in its sole discretion out of assets of the Partnership
legally available for payment.  The distributions payable on each
Partnership Preferred Security will be fixed at a rate per annum
of 8.125% of the stated liquidation preference of $25 per
Partnership Preferred Security.  Distributions on the Partnership
Preferred Securities are guaranteed by Enron to the extent that
the Partnership has available funds to pay such distributions.
Distributions not paid on the scheduled payment date will
accumulate and compound quarterly at the rate per annum equal to
8.125%.

6.   DEBENTURE LONG-TERM NOTE RECEIVABLE FROM AFFILIATES

   The Debentures (due 2016) bear interest at 7.75% per annum and
are guaranteed by Enron (see Note 1).  Of the Debentures
purchased, $136,450,000 are obligations of Enron, $21,836,000 are
obligations of an affiliate, Enron North America Corp., and
another $21,836,000 are obligations of another affiliate, Enron
Transportation Services Company.  The Debentures contain
redemption provisions that correspond to those applicable to the
Partnership Preferred Securities.  As of December 31, 2000 and
1999, based on the discounted present value of cash flows, the
estimated fair value of the Debentures was $194.8 million and
$182.3 million, respectively.  Judgment is necessarily required
in interpreting market data and the use of different market
assumptions or estimation methodologies may affect the estimated
fair value amounts.

<PAGE>
                           SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.



                                  ENRON CAPITAL TRUST II
                                        (Registrant)



Date:  March 28, 2001             By: BEN GLISAN, JR.
                                      Name:  Ben Glisan, Jr.
                                      Title: Regular Trustee



     Pursuant to the requirements of the Securities Exchange Act
of 1934, this Report has been signed below by the following
persons on behalf of the Registrant and in the capacities
indicated as of March 28, 2001.

Name                              Title

BEN GLISAN, JR.                   Regular Trustee
Ben Glisan, Jr.